The old Royal Bank of Scotland in Sutton High Street has been bought by Sutton Council for more than £2 million amid major regeneration plans.

After it closed last year, the vacant branch was purchased by the authority from DGP Property Developments Ltd days before Christmas in December 2018.

Now it’s hoped the property would help “support the regeneration” of the Elm Grove Estate and, more widely, Sutton town centre.

READ: From 2018: RBS bank in Sutton High Street among 162 set to close

In a report by Gerald Almeroth, the council’s strategic director for resources, he said: “As we developed the redesign of Elm Grove, it is clear that the incorporation of the high street property, where available, will have a positive effect on the estate regeneration and also the high street in that area.

“Benefits include the delivery of additional homes, the potential improvement in viability, the placemaking of the scheme and benefits to phasing.

“This proposed transaction provides an opportunity to acquire a substantial property strategically located to support the comprehensive regeneration of the Elm Grove Estate.”

It is predicted that a “comprehensive redevelopment” of the property has the potential to add around 33 homes, “of which an appropriate proportion would be affordable”.

Elm Grove Estate is expected to be redeveloped by the council within the next three to five years, the report adds.

The old RBS was purchased for £2,195,426, with acquisition costs of around £140,242 – bringing the total to £2,335,668.

Mr Almeroth’s report also states the £2.3 million cost will be funded through a three to five-year fixed rate loan with a likely interest rate of between 1.57 and 1.69 per cent.

The decision was approved on December 21 before the report was made publicly available.